Privateer Holdings Closes $40 Million in Convertible Note Financing

Company’s $122 Million Fundraising Total Marks the Largest Private Capital Raise in the Legal Cannabis Industry to Date

Privateer Holdings, the world’s first private equity firm to invest exclusively in legal cannabis, today announced that the company has closed an additional $40 million in convertible bridge financing. The $40 million in new funding brings the company’s fundraising total to $122 million, marking the largest private capital raise in the legal cannabis industry to date and the first time a cannabis company has raised more than $100 million. Privateer Holdings will use this new financing to expand its existing portfolio of brands into new markets, to make strategic acquisitions and to launch new ventures.

“From the United States to Canada to Europe to Australia, we are witnessing a global paradigm shift and the transformation of a $200 billion industry,” said Privateer Holdings co-founder and Chief Executive Officer Brendan Kennedy. “As the industry transitions from a state of prohibition to a state of legalization, we are proud to be developing a global portfolio of responsible, mainstream companies with the potential to grow into billion-dollar brands.”

Privateer Holdings was founded in 2010 by three visionary entrepreneurs with decades of experience in private equity and venture capital. The company’s investor base consists of high net worth individuals, family offices and institutional investors such as Founders Fund. The firm previously closed $7 million in Series A funding in July 2013 and $75 million in Series B funding in March 2015. The $40 million in new funding will convert into a future Series C equity round.

Based in Seattle, Washington, Privateer Holdings employs more than 300 professionals on the ground in 5 countries and 5 U.S. states. The team is focused on building the world’s leading portfolio of cannabis brands diversified across multiple geographies, sectors and consumer demographics. The company’s portfolio of disclosed investments so far includes:

Leafly – The world’s leading cannabis website and mobile application, with more than ten million visitors per month and the world’s largest database of user-generated reviews of cannabis strains, products and dispensaries.

Tilray– A global leader setting the standard for medical cannabis research and production. Tilray provides pharmaceutical-grade cannabis products to patients, researchers, pharmacies and governments around the world. Tilray cultivates, processes, packages and distributes medical cannabis products in adherence with Good Manufacturing Practices (GMP) at its state-of-the-art, $25 million, federally licensed facility in British Columbia, Canada. In addition to supplying thousands of patients across Canada, Tilray made history earlier this year as the first company to legally export medical cannabis products from North America to the European Union and Australia. The company is currently partnering with hospitals and universities to conduct six clinical trials examining the safety and efficacy of medical cannabis for a diverse range of conditions.

Marley Natural– A premium cannabis lifestyle brand deeply rooted in the life and legacy of Bob Marley. As the official Bob Marley cannabis brand, Marley Natural offers three product lines: all natural cannabis flower and oil, body care infused with cold-pressed hemp seed oil and Jamaican botanicals, and smoking accessories made from sustainably grown American black walnut and hand-blown glass. Marley Natural cannabis products are currently available at dispensaries throughout California and Oregon, and will launch in Washington state next month. Body care and smoking accessories are available nationwide via www.MarleyNaturalShop.com and in select retailers in New York, Miami, Tampa, Montego Bay, Los Angeles, San Francisco, Santa Cruz, Malibu, Honolulu, Portland, Boulder, and Colorado Springs.